Worldwide, natural disasters caused losses of USD 320 billion in 2024 (2023, adjusted for inflation: USD 268 billion), of which around USD 140 billion (USD 106 billion) were insured, Minich Re said in its recent press release “Natural disasters 2024: Climate change is showing its claws”.

The overall losses and, even more so, the insured losses were considerably higher than the inflation-adjusted averages of the past ten and 30 years (total losses: USD 236/181 billion; insured losses: USD 94/61 billion). In terms of insured losses, it was the third most expensive year; in terms of total losses, 2024 ranks fifth on the cost scale since 1980.

Weather catastrophes were responsible for 93% of overall losses and 97% of insured losses. Around 11,000 people lost their lives as a result of natural disasters in 2024 – significantly fewer than the average.

Losses from non-peak perils such as floods, wildfires, and severe thunderstorms were yet again substantial, producing total losses of USD 136 billion, of which around USD 67 billion were insured. Although this was slightly below the figures from the previous year (USD 143 billion, of which insured losses totalled a record USD 82 billion), it was well above the average figures of the past ten years (inflation-adjusted USD 110 billion/48 billion). It is striking that, from a long-term perspective, non-peak perils are increasingly fuelling the trend of rising losses, while peak risks like tropical cyclones and earthquakes continue to be a source of loss volatility.

In 2024, tropical cyclones alone contributed USD 135 billion to the total losses and USD 52 billion to the insured losses. The majority of these losses were caused by major hurricanes in the USA (USD 105 billion, of which USD 47 billion were insured).

Hardly any other year has made the consequences of global warming so clear: with annual average temperatures reaching around 1.5°C above pre-industrial levels for the first time, 2024 will surpass the previous record from 2023. This makes the past eleven years the warmest since the beginning of systematic record-keeping.

The impact of man-made climate change on weather disasters has been proven many times over by research: in many regions, severe thunderstorms and heavy rainfall are becoming more frequent and more extreme. Although tropical cyclones are not generally increasing in number, the proportion of extreme cyclones is growing. They, in turn, are rapidly intensifying and bringing extreme precipitation with them.

Key takeaways of the report include:

• Natural disasters 2024 – a loss-heavy year for the insurance market: USD 140 billion in insured losses – since 1980, only two years have been more expensive
• Weather catastrophes dominant – powerful hurricanes, severe thunderstorms and floods driving the losses
• North America with an even higher proportion of losses than usual – extreme flooding in Europe
• 2024 will replace 2023 as the hottest year to date – temperatures around 1.5°C higher than in the pre-industrial era.

“One record-breaking high after another – the consequences are devastating. The destructive forces of climate change are becoming increasingly evident, as backed up by science. Societies need to prepare for more severe weather catastrophes. Accordingly, Munich Re is expanding and adapting its risk models to address these developments. This allows us to maintain, and even expand, our substantial risk capacity, helping to close the protection gap. At its core, insurance puts a price tag on the risks, which further encourages prevention”, commented Thomas Blunck, Member of the Board of Management.